NEW DELHI: The second largest Indian hospitality player – ITC Hotels – is now looking at “accelerated growth” following its hiving off as a separate listed company from the eponymous parent group. On Tuesday as its shares were credited to demat accounts of eligible ITC shareholders, ITC Hotels MD Anil Chadha told TOI the carved-out debt-free company will be “more nimble, agile and attract higher investments”.
“We are well placed across segments from luxury to premium with our six brands. In last 24 months, we have opened 30 properties and as of now 4,000 keys in 45 properties are in the pipeline that will open at a similar pace. From 13,000 rooms in 140 hotels at present, we will grow to over 18,000 rooms in 200 hotels by 2030 with our asset-right strategy,” Chadha said.
The group has come a long way from the first hotel it opened in Chennai 50 years ago, followed by one in Agra and then Delhi’s Maurya. Tata Group’s Taj, India’s largest and oldest hospitality player, had opened its first property in 1903 and currently has a portfolio of 350 hotels, including about 120 in the pipeline. According to hospitality consultancy firm Hotelivate, Marriott International has the maximum hotel rooms in India (about 24,000), followed by Taj Group (about 22,000), Radisson (about 14,000), ITC (13,000) and Accor (about 10,000), followed by others.

Apart from unlocking value for the group, ITC Hotels’ demerger is also aimed at accelerating the pace of growth as Indian economy is poised to boom in coming years. After Sri Lanka, ITC is setting up two more hotels in Nepal, Chadha added.
“About 80% of our pipeline hotels are brownfield (which have a much higher chance of becoming reality that Greenfield projects), that will increase our managed portfolio. The earlier ratio of 45% owned and 55% managed properties will change to 65% managed and 35% owned. The next round of growth will come from upscale and economy segments,” Chadha said.
With its famous restaurant brands, food & beverage (F&B) has been an important part of ITC Hotels’ journey. In pre-Covid times, room rentals and F&B generated almost equal revenue with a significant number of walk-ins coming for dining too, apart from residents. Now with tariffs increasing sharply since late 2021, the share of tariffs has gone up to 52%, with F&B accounting for 40% and other items like banquets and spas the remaining 8%.
“We are not seeing slowdown in consumption in our industry. We are well poised to keep pace with our country’s growth.”